Aldi's first city centre store - in Manchester's Arndale Centre - has traded so successfully that the retailer plans to open more centrally-located supermarkets.

Edinburgh is the next city in the German discounter's sights for the larger format stores, as it continues in its bid to grow its UK and Ireland estate from 350 stores to 1,500.

Regional managing director Matthew Barnes said the Manchester outlet enjoyed a "far bigger turnover" than a standard Aldi, and had helped boost UK sales 17% year-on-year during the first half of 2007.

He claimed the store had proved popular because it offered city dwellers better value than rivals nearby.

"Our key point of difference is that we offer the same products at exactly the same price as in our other stores," he said. "This could not be said for a Sainsbury's city centre store."

A food to go offer had proved a hit, and this concept would be rolled out to more branches, he added.

"We've learnt we can sell a huge number of sandwiches and are looking at introducing an increased food to go range in other locations," said Barnes. "We also sell a phenomenal amount of fruit and veg, ready meals and alcohol."

At 15,000 sq ft, the Manchester store is about twice the size of Aldi's typical stores. Success at the outlet has encouraged the company to begin applying for permission to build larger stores. "We believe a slightly larger store is conducive to a better shopping experience," said Barnes.

Demographic trends meant opening more city centre stores was a wise strategy, he said.

"There's lots of regeneration and people moving back into cities."

Aldi's property buying team had been expanded to help the search for new premises, and the company had secured some former Kwik Save sites, Barnes added.

"We will have opened 50 new stores by the end of this year and plan to open a further 50 in 2008," he said. "We hope to continue growing at this pace."

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